The black fuel market, Another way to increase the Houthi wealth and finance their war

The Iran-backed Houthis resorted to maximizing their gains from the fuel market and established the black market after the group marginalized the role of the oil company, monopolizing the market for their benefit only, marginalizing real merchants, closing the face of their areas of control in the face of competitors through customs belts, and preventing import from any port other than the port of Hodeidah.

The mechanism set by the Houthis, which is being applied, lacks any economic vision, in addition to the fact that it has caused an increase and strengthening of the phenomenon of monopoly and the inflation of the black market. They did not take into account the difficult living conditions of citizens and the consequences of this increase on the rest of consumer goods.

The Houthis deliberately provoke recurrent and stifling crises in the oil derivatives market, as they prevented the unloading of a number of oil derivatives ships in the port of Hodeidah, in addition to the detention of a number of ships for several months, as well as seized trucks and trailers carrying oil derivatives that were on their way from Hodeidah to Sana’a, at a time the capital, Sanaa, is witnessing a stifling crisis in oil derivatives.

According to the a report issude by "Regain Yemen Initiative", the Houthis deliberately detain oil trucks at the entrances to Sana’a, with the aim of exacerbating the crisis of oil derivatives and raising their prices on the black market.

Indicators of the flow of fuel to Yemen during the first half of April 2021 showed that the Houthis made up a crisis of oil derivatives in their areas of control to revive the black market they run, to finance their war effort.

According to the indicators, the amount of fuel flowing into Yemen in the first half of April of the year 2021, amounted to 276,503 metric tons, which meets the average civilian and humanitarian need in all regions of Yemen for a period of 20 days, and that 70% of it was transported by land to Houthi militia-controlled areas with a daily average of 12,000 Metric tons directed by the militia to the black market to be sold at double prices.

Based on well-informed economic sources, "Regain Yemen Initiative" revealed that about 30 newly established Houthi companies constitute a "Houthi fuel mafia", which has exclusive powers to import through the ports of Hodeidah and Saleef.

Influential Houthis have established sub-companies, to import, sell and distribute oil derivatives in Houthi areas, the most prominent of which are: Star Plus Yemen, owned by Saddam Al-Faqih, Abkar Company, owned by Abdullah Abkar, Azal Petroleum, owned by Mohammed Gwabar, and Jima Yemen, owned by Ahmed Materah.

According to documented reports, it became clear that the dependence of the new oil companies that monopolize fuel and speculate in it, their ownership is divided between the senior leaders of the Houthis, namely Abdul Malik Al-Houthi, Mohammed Ali Al-Houthi, Abdu Al-Karim Al-Houthi, Mohammed Abdu Al-Salam, Abu Ali Al-Hakim, Ahmed Hamid, and Abdul Al-Khaliq Al-Houthi.

The report of the "Regain Yemen Initiative" included a black list containing the names of Houthi leaders, commercial companies and banks involved in supplying the Houthis with oil trade and money laundering.

In addition, the report contained a set of details about the black market and how it is managed by the Houthis.

"Regain Yemen Initiative" recommended not granting any fuel shipments imported through the companies mentioned in the report, entry licenses to the ports of Yemen, and adopting government conditions to qualify companies wishing to import fuel to Houthi areas, as well as approving the ports of the government regions to import oil derivatives to Yemen.

The recommendations stressed the importance of international organizations providing data on humanitarian aid to Yemen, especially to Houthi-controlled areas, in order not to be used militarily and financing the war for the Houthis.

It also appealed to the international and local community to issue a blacklist of all those proven to be involved in financing militias with oil, and to impose sanctions on them or anyone who provides any facilities.